Revenue share vs equity for startup delivery
Revenue share and equity are not interchangeable discounts on a build. Equity transfers ownership in a company; revenue share allocates a defined portion of specified revenue under a contract.
Equity changes ownership
Equity can provide long-term upside and governance rights, while exposing both sides to dilution, company-wide outcomes, and a relationship that can outlast a product. The exact rights depend on the instrument and company documents.
Revenue share follows defined receipts
Revenue share requires a precise revenue definition, percentage, deductions, reporting, audit rights, payment timing, duration, and exit treatment. A headline percentage without its basis cannot be compared responsibly.
Fixed fees and services price different work
A build fee pays for defined delivery. A managed-service fee pays for continuing operations or growth work. Metered usage pays for variable platform or third-party resources. Combining them is valid only when each obligation remains clear.
Compare downside as well as upside
Examine what is owed when revenue is zero, costs rise, scope changes, the product is sold, the relationship ends, or one party stops performing. Signed definitions and exit rules matter more than the marketing label.